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Timeshare Sales Commissions Charged by Licensed Brokers
® Timeshare Resales Worldwide
The no up-front fee licensed Broker. America's oldest online timeshare broker!
Since most of us are entrenched with the idea that the commission charged on RESIDENTIAL real estate is usually 6 per cent, it warrants discussion why timeshare
Brokers charge a higher percentage.
First, realize that 6 per cent on a typical house may be a low percentage, but because the sales price is many times higher than for timeshare, 6% is a
HIGH amount of dollars.
A timeshare sale involves just as much work and expense as selling a house, sometimes even more, but the commission DOLLAR AMOUNT is so low that most
traditional realtors consider it a waste of their time to sell timeshare.
So yes, the percentage is higher for timeshare, but the actual dollar amount is far smaller.
It is a high-percentage but low dollar-amount commission.
Compared to home sales, timeshare is a completely different industry with very small sales prices and expenses that are proportionately much higher.
It is very difficult and expensive to properly market the sale of a timeshare.
On a new sale from the timeshare Developer, it is well known that the commissions and marketing paid by the buyer as part of the purchase price, total approximately
50 per cent! That is one of the reasons that the resale on a typical timeshare is only a maximum of about 50 per cent of what was originally paid.
In the timeshare RESALE industry, Brokerage commissions charged by Licensed Real Estate Brokers average between 20% to 40%.
Timeshare resorts and timeshare developers, typically charge 25% to 40% for resale transactions
Also, most licensed timeshare real estate brokers have a mandatory minimum commission amount ranging
in the vicinity of $2000 to $3000. with the average being about $2,500.
Because the average resale price is so low, the mandatory minimum commission
is necessary if the Broker is to stay in business while paying the proportionately
higher expenses pertinent to professionally marketing a timeshare.
The cost of a sale for a broker is the same on a low priced listing as it is on a higher priced listing.
Again, the average commission of $2,500 is not a lot of money compared to the
the work of initiating the sale, following it through with buyer and seller until
it closes, the liability, and the responsibility for the expenses incurred for the
whole process. Remember that if you sell without a broker only you alone are liable for problems.
Our company is paid a fee only if we are successful in selling the timeshare, we
bear all the expenses whether it sells or not, and we firmly believe that this
is the only way it should be.
We are a leading resale company, and happy to be able to do so honestly and without
charging any sort of an advance fee.
Our broker is one of a relatively few other brokers out there who have the same policy.
We are well aware that we could make many times more money and we could easily devise
some scheme convincing enough to cause sellers to pay upfront fees - it is far less work
and far easier to find people willing to pay to get out of a timeshare, than
it is to find buyers who are willing to pay to buy one!
But we are firmly committed to our policy of a reasonable fee for service, only
after the service is performed.
In conclusion, when considering paying a timeshare commission, focus on the
dollar amount for the job done, and not the commission percentage.
And when comparing between Brokers, the lowest offered commission may not
be the wisest, either.
If the goal is to actually sell the property, the
Broker with an average commission who expends what it takes and actually sells
the timeshare, is certainly a wiser choice than choosing a Broker willing to
list it with a low commission but who doesn't do much, and doesn't sell the property.
Rest assured that no-upfront-fee Brokers like us, net only
a modest return on the high-percentage but low dollar-amount fee.
The worst thing a seller can do is to take the attitude where the seller
says to the Broker, "no way am I going to pay 'that kind of percentage' to
sell my timeshare!" - then they foolishly turn around and pay upfront fees
repeatedly to companies who DON'T SELL THEIR TIMESHARE and usually aren't
even licensed real estate Brokers.
The result is that these sellers end up paying exorbitant fees to NOT SELL IT, rather than a fair commission, to SELL IT!
PLEASE, don't fall prey to the many companies out there who are ready, willing,
and able, to convincingly tell you how they are going to sell your timeshare
for a grand price as soon as you pay them (or the company they refer you to) some
sort of an upfront fee or appraisal fee - no matter how logical the reason for the upfront fee sounds.
On a positive note, before the Internet came along, there was virtually no means of
marketing a timeshare resale at any price, but the good news is that there now is
a strong market, as long as the price is in accordance with the price for which
other sellers are willing to sell identical units.
It is our standard company policy, at no charge, to give sellers an honest
estimate of market value.
See other advice for sellers, such as How To Price A Timeshare Resale, and other advice.
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